SEC Dismisses Cases Against Coinbase and Consensys, Signaling Shift in Crypto Regulation

The U.S. Securities and Exchange Commission (SEC) has dismissed its case against Coinbase, as filed with the Southern District of New York on Thursday. This decision follows the SEC's agreement in principle to dismiss its securities enforcement case against Consensys, announced on February 27. The SEC initially sued Coinbase in June 2023, alleging violations of U.S. securities laws by operating as an unregistered broker, exchange, and clearing agency. The case against Consensys, filed on June 28, 2024, accused the company of unregistered securities offerings through MetaMask Staking and operating as an unregistered broker via MetaMask Staking and Swaps. Acting SEC Chairman Mark T. Uyeda stated on January 21, 2025, that the Commission's previous approach relied on enforcement actions without public engagement. This shift signals a move towards a more comprehensive regulatory framework, supported by the newly formed Crypto Task Force. Coinbase stock (COIN) closed at $208 on Thursday, down 5%.